Hub Podcasts Canada's condo market collapse
Oct 9, 2025
Ron Butler, founder of Butler Mortgage and a seasoned commentator on Canadian housing, delves into the troubling state of Canada's condo market. He highlights the surge in developers selling unsold units in bulk to avoid losses, but argues this doesn't stabilize prices. As new rental towers flood the market, both rents and condo values are plummeting. With no new construction on the horizon due to untenable costs and high municipal fees, Butler warns that mortgaged condo owners face ongoing financial struggles.
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Bulk Leftover Condo Sales
- Developers closed projects this year and found 15–25% of buyers refused to close, leaving many leftover units.
- Those leftovers plus units developers held back are being sold in bulk to financial firms as rentals.
Private Bulk Sales Don't Reset Market Prices
- Bulk private sales give developers breathing room but do not move public market prices because deals are secret.
- Market prices respond to visible inventory and new completions, not undisclosed bulk transactions.
Investor Units Facing Rental Glut
- Most newly completed condos are investor-owned and will be rented rather than owner-occupied.
- A simultaneous surge in purpose-built rental supply will push rents and investor returns lower.